President of Epsilon Energy Jason Stabell Buys 2.3% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Epsilon Energy Ltd. (NASDAQ:EPSN) President, Jason Stabell, recently bought US$85k worth of stock, for US$5.67 per share. However, it only increased their shares held by 2.3%, and it wasn't a huge purchase by absolute value, either.

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Epsilon Energy Insider Transactions Over The Last Year

Notably, that recent purchase by President Jason Stabell was not the only time they bought Epsilon Energy shares this year. Earlier in the year, they paid US$5.05 per share in a US$374k purchase. We do like to see buying, but this purchase was made at well below the current price of US$6.06. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months Epsilon Energy insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Epsilon Energy

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Epsilon Energy Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Epsilon Energy insiders own 5.4% of the company, worth about US$6.9m. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Epsilon Energy Tell Us?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Epsilon Energy insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Epsilon Energy has 2 warning signs and it would be unwise to ignore these.

But note: Epsilon Energy may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.